Modern portfolio theory stems from the work submitted by Harry Markowitz in his PhD in the 1950s. The theory has seen the development of asset pricing models, such as the Capital Asset Pricing Model (CAPM), Factor models and Arbitrage Pricing Theory (APT) 1. Describe, in your own words, how the capital market line is different from the security market line. 2. Explain, in your own words, why the asset-specific risk of an ASX200 index exchange traded fund is different from the asset-specific risk of shares in Ansell Limited. 3. Describe, in your own words, two ways a multi-factor model is different from the arbitrage pricing theory?